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It’s more expensive because you pay US wages to make the car. PPP is the real reason why it’s cheaper to build in a country where a $1000/month is a really good

It’s more expensive because you pay US wages to make the car. PPP is the real reason why it’s cheaper to build in a country where a $1000/month is a really good salary that will afford you a comfortable lifestyle on 1 income.

alephnerd 2y ago
Purchasing Power is not enough to tip the scales. The reason costs are low is because of scale and automation. Suzuki exports it's India manufactured cars and components across Asia and Africa which helps drive costs down drastically, and leadership make a strategic decision to pivot towards automation. Maruti Suzuki has been heavily automated for almost 2 decades now, especially after the union killed a plant manager and burnt down the Manesar factory in 2012 [2] Already in 2017 Maruti Suzuki had 2000 installed units for 10000 employees [0], but the US still had around 1300 installed units for 10000 employees in 2021 [1]. Also, salaries in Maruti Suzuki Manesar and Gurgaon (the flagship factories in suburbs of Delhi) are similar to Dacia's in Romania and the CoL in Delhi NCR is comparable to Eastern Europe in general, yet similar cars in Europe will cost around $10-15k. [0] - https://www.livemint.com/Companies/0qexlea1C0MelXiAXcveOJ/Robots-sweep-across-Maruti-Suzukis-shop-floor.html https://www.livemint.com/Companies/0qexlea1C0MelXiAXcveOJ/Ro... [1] - https://ifr.org/ifr-press-releases/news/us-robot-density-in-car-industry-ranks-7th-worldwide https://ifr.org/ifr-press-releases/news/us-robot-density-in-... [2] - https://www.ndtv.com/india-news/verdict-today-for-maruti-workers-in-deadly-haryana-riot-10-facts-1668232 https://www.ndtv.com/india-news/verdict-today-for-maruti-wor...